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GAIL signs long-term agreement with Vitol Asia for annual supply of LNG; Stock gainsThe agreement is for a period of ten years, starting 2026. Vitol will be delivering LNG to GAIL from its global LNG portfolio.By Shloka Badkar   July 15, 2025, 12:18:59 PM IST (Published)2 Min ReadGAIL (India) Ltd. on Tuesday, July 15, said it has signed a long-term LNG sales and purchase agreement with Vitol Asia Pte. Ltd. for the annual supply of approximately 1 million metric tonne per annum (MMTPA) of liquefied natural gas (LNG).

The agreement is for a period of ten years, starting 2026. Vitol will be delivering LNG to GAIL from its global LNG portfolio.

GAIL's director (marketing) Sanjay Kumar said the company is expanding its long-term LNG portfolio to meet demand growth.

"The growing Indian market is core to Vitol's strategy and Vitol's diversified portfolio enables it to offer India a stable supply of cleaner and competitive energy," Jay Ng, chief financial officer of Vitol Asia and executive committee member, said.

GAIL in its stock exchange said India emerged as the fourth-largest LNG importer in 2024, with demand expected to rise steadily over the next decade.

The Centre has set a target to increase the share of natural gas in the country's primary energy mix from the current 6% to 15% by 2030, it said. India's LNG regasification capacity has witnessed substantial growth, nearly doubling from 21 MMTPA in 2014.

On another note, GAIL is poised for a significant boost in its pipeline tariffs, with sources indicating a potential increase of nearly 20%.

The Petroleum and Natural Gas Regulatory Board (PNGRB) is expected to approve a revised tariff in the range of ₹70 per mmBtu, up from the current rate of ₹58.59 per mmBtu.

According to exclusive information, the tariff order could be finalized within the next one to two months. AK Tiwari, the PNGRB board member who spoke to CNBC-TV18 last week, stated that the board would adopt a "balanced approach" and give due consideration to GAIL’s official submissions.

GAIL has submitted a proposal for a tariff of ₹78 per mmBtu but has signaled to CNBC-TV18 that a revision of ₹70 – ₹71 per mmBtu would still be viewed as a positive outcome.

The proposed tariff revision is seen as a key earnings driver for GAIL, especially as the company continues to expand its natural gas transmission network across India.

GAIL shares were up 0.4% at ₹184.4 apiece at 12.10 pm on Tuesday, July 15. The stock has declined 3.6% in the past month.

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